Day care providers and families across the Twin Cities are entering 2026 with growing uncertainty after the Trump administration announced plans to temporarily freeze federal child care funding tied to Minnesota’s Child Care Assistance Program (CCAP).
Providers say the lack of clarity around payments could force centers to shut their doors within weeks, putting thousands of working families at risk.
Providers Say Guidance Is Unclear
Preparing to reopen after the holiday break, Monique Stumon, director of the School Readiness Learning Academy in Minneapolis, said she has been unable to get answers about upcoming CCAP reimbursements.
“I called the CCAP help line with questions about billing, but there was no information available,” Stumon said.
CCAP supports roughly 23,000 children and 12,000 families statewide. According to state data, Minnesota invested $306.6 million in affordable child care during fiscal year 2024. For the current fiscal year ending in September 2026, federal funding was projected to reach $218 million, with the state contributing an additional $155 million.
Funding Freeze Follows Viral Allegations
The funding freeze follows claims made in a viral video by YouTuber Nick Shirley, who alleged that Minneapolis-area day care centers were collecting government funds while remaining empty.
In response, the Minnesota Department of Children, Youth, and Families conducted an expedited investigation. In a news release issued Friday, the department said one facility featured in the video has been closed since 2018. Inspectors with the Office of Inspector General also reported finding children present at eight other centers during compliance checks conducted this week.
One additional facility had no children present at the time of inspection because it had not yet opened for the day, according to the agency.
Providers Warn of Closures Within Weeks
Despite the state’s findings, federal officials have indicated they will move forward with a temporary restriction on Minnesota’s ability to draw down Child Care and Development Fund (CCDF) reimbursements.
Stumon said roughly 80% of the children enrolled at her center rely on CCAP. Her program has been licensed since 2009 and has no fraud allegations on record.
“If the funding stopped today, we might last a month,” she said. “I’m worried children will be left home alone. I’m worried about school-age kids who come here after school so their parents can work.”
She confirmed she was still able to submit billing as of Friday morning, but said providers have not been told what will happen next week.
Families Say Jobs Are on the Line
Parents who depend on subsidized child care say the potential freeze could upend their lives.
Nautica Vaughn of St. Paul said CCAP allows her to pay $27 per child for care.
“If I don’t have anyone to watch my kids, I can’t work,” Vaughn said. “It’s going to be really hard.”
Advocates warn that disruptions could ripple through the workforce, particularly affecting lower-income families and single parents who rely on consistent child care to maintain employment.
State Given Deadline to Submit Data
In an email sent Friday to child care providers and shared with The Associated Press, state officials said Minnesota has until January 9 to comply with data requests from the Administration for Children and Families, a division of the U.S. Department of Health and Human Services.
Federal officials are seeking information covering the years 2022 through 2025, including:
- Total CCDF or Temporary Assistance for Needy Families (TANF) child care funds received by five specifically named centers
- Attendance records, inspections, and assessment documentation for those centers
- Complete CCDF administrative data for all recipients, including identifying information
- Details related to alleged fraud networks and oversight failures
- A comprehensive list of all CCDF-funded providers and intermediaries, including total funding amounts
The state has not publicly identified the five child care centers referenced in the request.
What Comes Next
State officials said Minnesota will face a temporary restriction on drawing down federal CCDF reimbursements, with additional guidance expected Monday. Providers say the timing could not be worse, coming just as families return from the holidays and centers resume normal operations.
Until clearer direction is issued, child care operators across the Twin Cities remain in limbo, unsure whether payments will continue or if closures could follow, leaving thousands of children without care and parents without options.
